Getting your rent, service charges and housing benefit eligibility right in an uncertain future Or to put it another trying to understand the inky splodges/muddy waters around at the moment

What is certain? Things are changing At present there are no certainties Everything you do in relation to your rent service charges must be supported by evidence  the I s & × the Ts every time Don’t count on anything in the longer term but maximise what you can Think about you users

What is uncertain …the future Recent Government announcement relating to the 1% decrease and Supported Accommodation: The 1% rent reduction does apply but you can increase you overall rent by 10% So is 1% reduction, 10% increase BOTH Therefore you can actually increase your rents by 9% overall But there is no detail on this one yet but it is around the Rent Standard Guidance

Local Housing Allowance & DHP the biggest threat to date What is known? The LHA for social housing will apply to ALL social housing from April 2018 for tenants resident after April 2016 But the Blue Book states: Additional Discretionary Housing Payment funding will be made available to local authorities to protect the most vulnerable including those in supported accommodation. Inside Housing 21/01/16: The government has offered £70m additional Discretionary Housing Payments for two years from 2018 to cover the shortfall, which providers warn is insufficient. For example in one District LA area the annual shortfall for sheltered ONLY is £243,000 which is their total annual DHP budget

But what we have now and what to do now? Ensure rent and service charges reflect the true costs of the accommodation and related services Be aware of what might be coming and when (we will look at this later) Make sure the tenants challenges decisions that you disagree with and support the tenants Try to work with HB where possible

Rent & Service Charges Rent HB does not distinguish charges included within core rent element but they may ask. Use common sense e.g. Basic Housing Management Major repairs Loan repayments on building Services, defined as: “ ….services performed or facilities provided for, or rights made available to, the occupier of a dwelling (including the use of furniture) ” DWP HB Guidance Manual provides a list of potentially eligible items but also states that the list: “…….. does not cover every service that may be eligible, it aims to cover the items HB will usually need to determine” 6

Service Charges Charges for any service not connected to the provision of adequate accommodation are NOT eligible for housing benefit. This includes services which make it possible to occupy the accommodation but which have no bearing on the adequacy, that is the fabric, of the accommodation. (E.g. supporting tenants to address personal hygiene issues) The accommodation must be adequate as accommodation in general, not just with regard to the particular claimant.

Excessive Eligible Service Costs HB can decide that a charge for a particular service is an eligible charge, but the payment is excessive for the service provided HB will deduct an amount considered appropriate to arrive at the correct eligible service charge Only the tenants can challenge these decisions following the notification of a specific claim

Reviewing rents and service charges It is never the wrong time to review your charges o Do annual rent and service charges reviews Ensure charges are driven by appropriate costing methods rather than chasing the money Use full cost recovery e.g. consider on-costs The economies of housing alongside welfare reform make uncertain times Things may/will change continue to change

Ensuring your rent levels are sustainable It is important to ensure your rents are affordable BUT it is essential to ensure the rent charged covers the full costs of accommodation and services or your service may not be sustainable in the longer term Always keep evidence of how your rents and service charges are calculated. You may need them if HB challenge the levels. 10

HOUSING BENEFIT DECISION PROCESS AND CHALLENGING DECISIONS 11

How do HB decide the level of payment? 1. HB will consider whether the rent levels are reasonable. oToThey may request evidence from you to support their decision oyoyou should negotiate and co-operate with all ‘reasonable’ requests made by HB. B ut do not provide personal details or information without the tenant’s permission 2. HB will consider the tenant’s income v the rent levels (not considered in this document) 3. HB will notify the tenant of their decision in writing (and your if HB is paid direct). 4. If necessary, the tenant can submit a challenge within 28 days of the decision. 12

Reasonable requests for information from HB It is essential to provide reasonable information as soon as possible to avoid delays: o Evidence to support service charge costs e.g. details of furnishings, fuel etc o An overview of the service and support provided o An overview of the support provided to individual tenants (it is decided on a case by case basis) Do NOT provide intimate personal details relating to individual tenants without their permission and only those details that you consider reasonable If you a concerned seek further advice 13

Challenging HB decisions Only the tenant can challenge a decision made by a Housing Benefit department: They must sign the letters or They must sign a letter authorising another person to act on their behalf (HB will often challenge these letters) your can only challenge a decision relating to an award of housing benefit in extremely limited circumstances, e.g. if a direct payment being reclaimed is not received 14

Challenging HB decisions If in doubt about a decision get the tenant to ask for full written reasons for the decision or challenge the decisions with reasons outlined Timelines are tight – a challenge must be submitted within one month of the date on the notification sent to the tenant Keep track of all correspondence with HB and keep chasing If HB does not accept the challenge, the tenant can appeal to the First-Tier Tribunal *For further information, see “Challenging housing benefit decisions” on yourNet* 15

Important Points to Remember 16

IMPORTANT/ESSENTIAL All HB eligible charges MUST be a condition of occupation Some tenants may have to pay the increases e.g. if they are not eligible for Housing Benefit You cannot create a contrived agreement – any variation or increases must apply across all tenants, unless there are specific reasons e.g. properties vary in size

Potential check list 1. Review what services you provide and how should they be funded. 2. Review your rent and service charges regularly (preferably annually) 3. Look at the activities and tasks – what staff time is used to deliver which of the services, including provision of accommodation services, basic HM and support? 4. On-costs are allowable: You need insurance for your properties Accommodation and services need to be managed 5. Identify the overall costs of each activity/service including equipment replacement over the relevant period e.g. communal furnishing over 3-5 years 6. Have you got all you rent policies and processes in place? 7. Always talk to Housing Benefit – they don’t bite and most respond to the personal approach.